The Art of Architecture Transformation

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Oracle Safe Harbor

The following is intended to outline our general product

direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing
decisions. The development, release, and timing of any
features or functionality described for Oracles products
remains at the sole discretion of Oracle.

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Welcome
Hello and welcome to our webcast in enterprise architecture. I am Peter Heller, a Senior
Director, in Oracle Technology Marketing. Our topic today is The Art of Architecture
Transformation.
As we all know, large scale transformations can be very challenging. These challenges are
not only compounded by a wide array of new technology components and high business
expectation to get it right the first time, but also for planning and executing something that
your organization or you - have never done!
Today, we want to explore the art and science of large scale architecture planning. Our
speakers are practicing enterprise architects, and will share their experiences and lessons
learned in rebuilding entire IT organizations and infrastructure.
They will discuss this in terms of a standardized approach that includes business-led
architecture planning, change management, and business communication. All of which are
critical to ensure that your projects stay supported and funded! Let me introduce our
speakers.

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Your Oracle Speakers

Alan Levine Hank Margolis

Senior Director Senior Director
Oracle Enterprise Architect Oracle Business Architecture
Advanced Technology Services Enterprise Solutions Group

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Introductions
Joining me today is Alan Levine, Senior Director, and Oracle Enterprise Architect from
Oracles Advanced Technology Services group.
Alan has 25 years experience in the IT industry, including 17 years as a technology and architecture leader in Oracle
Consulting. Alan advises large enterprises through complex IT transitions including, leading technology architecture
assessments, developing future state architectures, and implementation roadmaps tightly aligned with an organizations
business goals. Alans experience spans a wide variety of industries and technology domains.
Welcome Alan. <Alan acknowledges>
And also joining us is Hank Margolis, Senior Director, Oracle Business
Architecture from Oracles Enterprise Solutions group.
Hank has 8 years working in Oracles Enterprise Solutions Group, and is a founding member of the Oracle Business
Architecture team. Prior to joining Oracle, Mr. Margolis served as CEO of two internet start-up companies, was VP of IT,
Operations, and Consulting for a wireless company, and ran the consulting practice at an applications vendor.
Welcome Hank. <Hank acknowledges>

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Agenda

Why Architecture Transformation?

How can Enterprise Architecture Help?
A Methodology for Architecture Transformation
Summary

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Architecture Transformation

Architecture Transformation
The fundamental organization of a system, The act of changing form,
embodied in its components, their relationships appearance, or structure.
to each other and the environment, and the Random House
principles governing its design and evolution.
ANSI/IEEE Std 1471-2000

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 IT Driven Architecture Transformation
IT has been setting the course

IT has been driving technology

change for the last 30 years
Businesses adopted technology Cloud
innovations because they could
Grid
afford to or out of necessity to Internet
keep up with their competitors
N-tier
Transformation was mostly
focused on new initiatives, Client
driving an ever expanding IT Server
portfolio

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Business Driven Architecture Transformation
Has IT been too aligned with the business?
Line of business centric deployments
Redundant applications and
technology platforms
Stove-piped infrastructure with under-
utilized resources
High levels of investment in
integration to tie systems together
limits ability to invest in innovation
Growing challenges with maintaining
agility and responsiveness to
changing business conditions

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Business as Usual is No Longer an Option

2008 The global financial crisis and US

recession changed everything
Limited refresh and investment over the
last 4 years
Many organizations now have a short
term cost cutting focus adding
increased pressure on IT without adding
resources
Competitive business pressures
continue to drive new technology
initiatives

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 IT Operating Structures are Outdated
A move towards simplicity is required
The stove pipes we created during the age
of technology exuberance have become
significant obstacles to realigning IT to
meet todays business needs

IT and Business leaders must come

together and create more efficient ways to
architect, plan, build, and operate
technology

We need transformational approaches to

replace the complexity we have created

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 The New IT Operating Model
Empower and Measure
IT held accountable to an Enterprise
Strategy
IT empowered to innovate
IT results measured by business
capabilities delivered, agility, and
transparency
Business embraces IT ability deliver
both innovation and cost savings
Note: Innovation and cost savings
are NOT mutually exclusive!

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Agenda

Why Architecture Transformation?

How can Enterprise Architecture Help?
A Methodology for Architecture Transformation
Summary

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Enterprise Architecture is a Science
Cookbook based Enterprise
Architecture leads to Architecture
Methods
Tools
Shelfware
EA practitioners must not lose site
Reference of the core principle of Business
Architec-
tures
Alignment
Corporate culture and the IT
Operating Model have a significant
impact on an organizations ability
One size Fits All to embrace and effect change
Architecture

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Enterprise Architecture is an Art
Understanding your organization heavily influences EA

People
Organization
Industry
Budgets
Regulatory
Corporate culture
Tolerance for risk

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Is It A Problem We Should Solve?

Are business capabilities impacted?

Real? Are critical service level agreements being missed?

Can IT deliver an actionable strategy in alignment

Win? with the direction of the business?
Do we have the methods and tools to be successful?

What is the financial impact of the problem?

Worth it? What will it cost to fix?
How long will it take?

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Agenda

Why Architecture Transformation?

How can Enterprise Architecture Help?
A Methodology for Architecture Transformation
Summary

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Business Architecture
Why is the business investing?
What does the business need to do that
it cant do today?
Why do they need to do that? (What
benefits will the organization enjoy?)
What changes need to occur in order to
meet the business requirements?
Why should they be confident this will
work?
How we help them justify the investment
needed?

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Achieving Architecture Financial Objectives
Art: Balancing end state with investment and payback

Maturing

Earning
Payback Period

Investment

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Architecture Vision

What happens
if you dont have an architecture vision?

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 What is an Architecture Vision?

A Transformative Architecture Vision

Starts with a big idea

Is aligned with a set of business challenges
Includes a technology and financial perspective
Is grounded in architecture principles
Solves a real problem

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Architecture Vision Example: IT Simplification

Example
Large Global Financial Institution

Business Drivers
Reduce costs
Reduce IT complexity

Architecture Vision
Build a private cloud for databases
and middleware based on Oracles
engineered systems
Simplify IT via standardization and
consolidation to replace an aging
infrastructure

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Current State Analysis
A business case for architecture transformation Current state analysis helps
requires reliable current state financial data answer questions such as:
How big is the problem?
How much is the problem costing
me today?
Do I really have a problem?
How near or far am I from my
Architecture Vision
A technology roadmap needs to
have a starting point
Current state analysis helps
Current state information helps determine if the identify the best targets to start
problem is worth solving with

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Current State Example: Infrastructure Consolidation

Line of business based

deployment models have given
rise to huge inefficiencies in
todays IT portfolios
Server sprawl
Underutilized server capacity
Complex multi-vendor
environments with redundant
technologies deployed
Collecting the right data points can
help us make the case for
Architecture Transformation
Lack of good data leads to
ineffective IT decision making

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Future State benefits should be measurable, deliver business
value, and align with our Architecture Vision
Consolidated Database Servers

How much will we save

the business?
Where have we
reduced costs and
complexity?
Are we enabling new
capabilities?
Have we replaced aging
and inefficient ones?

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Leverage Proven Architectures
Speed to delivery drives the business case

Eliminate redundancy and complexity by building on proven reference architectures

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Roadmap
When do we start realizing the benefits?

What do we do first?
When do we realize the
financial benefits?
Where have we realized
improved capabilities?
Where is the finish line?
Todays future state is
tomorrows current state

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Governance
How do we sustain the value over the long term?
Value needs to impact the business
If its cost takeout, it needs to take out their cost, too
Be realistic about roles and responsibilities
For example, the value of data stewardship needs to be
clearly understood
Measure, measure, measure
Establish performance metrics which demonstrates the
value created and report on it frequently to key
stakeholders
Insure enrollment from impacted people by including
them in the business and enterprise architecture

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 A Practical Approach to Architecture Transformation

Oracle Architecture Development

Process provides prescriptive guidance
to help you move forward
An iterative approach enables rapid
adoption of changing business
conditions
We stay focused on delivering results
It might take more than one iteration
Oracle Architecture
Development Process

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Agenda

Why Architecture Transformation?

How can Enterprise Architecture Help?
A Methodology for Architecture Transformation
Summary

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Architecture Transformation is a Journey

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 What Works?
Maximize your likelihood of success

Fix Problems that Need to be Fixed Top Down Strategy

Executive sponsorship and mandate
Problem is real, we can do it, it has a
Corporate strategy alignment
financial payback
Bottom Up Strategy
Demonstrable cost savings with
Guarantee quality of services
reasonable payback periods, time,
Economics will win them over
and level of investment
Speed
Functional changes to specific
Leverage automation and change
business processes yielding improved management
efficiencies or customer service As money gets more expensive,
payback periods get shorter

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Summary
Understand and measure the business
impact of architecture transformation
Align closely with culture, change and risk
tolerance, and financial realities
Fit within your organizations operational
model
Develop clear measurable impact and
provide a mechanism for reporting on this
Take the initiative!
impact

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Key Takeaways
Leverage Oracles Portfolio of EA Assets

People Process Portfolio

Certified Architects, Best Practices, Tested Principles,

Experienced Advisors Practical Methodology Trusted Artifacts

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 To Learn More

Twitter
twitter.com/OracleEAs
Facebook
facebook.com/OracleEA
LinkedIn
Oracle Enterprise Architects A Public Discussion Forum
Oracles EA Blog
blogs.oracle.com/EnterpriseArchitecture

Oracle EA Projects & Papers: oracle.com/goto/EA

Oracle Reference Architectures: oracle.com/goto/ITStrategies

Copyright 2012, Oracle and/or its affiliates. All rights reserved.

 Thank You

Copyright 2012, Oracle and/or its affiliates. All rights reserved.